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The new instalment system applies for the tax year ending on 31 December 2003 and subsequent tax years. For taxpayers permitted to use a substituted tax year, the new instalment system
applies for the first such year ending after 31 December 2003.
8.2. Final payment
8.2.1. Due Date Income tax is due on 15 March of the year following the year of the income.
For companies with a substituted tax year, income tax is due on the fifteenth day of the third month after the end of the substituted tax year.
8.2.2. Allowable credits For a resident taxpayer and permanent establishment of a non-resident, the tax due for the year
concerned shall be reduced by any tax credits in the form of:
a amounts withheld from payments subject to non-final withholding; b instalments paid by the taxpayer;
c tax paid or due on income from abroad that may be credited as foreign tax credits.
8.2.3. Underpayment or Overpayment If the tax due for a tax year is greater than the tax credit, the underpaid tax must be paid, along
with the lodgment of an annual income tax form, on or before the 15th day of the third month after the tax year or substituted tax year ended.
If the tax due for a tax year is less than the amount of tax credit, the overpayment will, after verification, be applied against any other taxes then due if any or refunded.
9. ANNUAL INCOME TAX FORM
Tax returns for the year ended 31 December 2002, together with any payments must be lodged on or before 15 March 2003. Two copies of the form should be completed, one for the
taxpayer’s records and the other for the ETRS. If a tax payment is not required, one copy of the completed income tax return is to be delivered
to the ETRS District Office. The ETRS Dili District Office is located the Justice Building on the corner of Don Fernando and Jacinto de Candido Streets, immediately south of the former LGR
building and west of the Lyceum. The office is open between the hours of 9am and 5 pm Monday to Friday holidays excepted.
If a taxpayer is required to make a tax payment, two copies of the completed income tax return and payment are to be presented to the Banco Nacional Ultramarino BNU.
For taxpayers based outside of Dili, the income tax return can be delivered to the: - ETRS Baucau office Vilanova Street, Baucau with payment to the Baucau District Finance
Officer, or
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- ETRS Maliana office Holsa Street, Maliana with payment to the Maliana Microfinance office.
The income tax form of a taxpayer conducting business activities shall be accompanied by the taxpayer’s income statement, balance sheet and cash flow statement for the tax year.
A taxpayer may apply in writing to the Commissioner for an extension of time to deliver an income tax form. An application must be accompanied by a statement estimating the amount of
income tax due for the tax year and proof of settlement of the tax due. The Commissioner may, by notice in writing, grant the taxpayer’s application for an extension of time for delivering an
income tax form. The granting of an extension of time does not alter the due date for payment of tax.
10. TAXPAYER OBLIGATIONS
Enterprises, permanent establishments and other persons liable to pay or withhold taxes, are required to obtain a Tax Identification Number in East Timor.
The Commissioner may require the inclusion of the tax identification number in any form, notice, or other document used for tax purposes. The Commissioner may also designate other
documents or registrations including but not limited to a licence, permit, passport, registration certificate as documents or registrations requiring presentation of a tax identification number
prior to its issue. Anyone liable to pay or withhold tax shall create and maintain records of account suitable to
determine their liability to pay or withhold tax, in Tetum, Portuguese, English or Indonesian, for a period of at least five years after the tax year in which the tax liability to which they relate
arose. Where records needed by taxpayers are unavailable, mainly because of damage and destruction,
the Commissioner may determine on a reasonable basis any amounts that would have been calculated by reference to any other available information.
11. POWERS OF INVESTIGATION
